Oregon’s 2025 legislative session delivered mixed results for climate progress. Sound familiar? That’s because this is the second year in a row that Oregon lawmakers fell short of delivering the bold investments and climate action this moment demands. While we secured hard-fought wins and defended against serious threats that would unwind existing progress, this was far from a banner year for climate action in Oregon. Still, this session laid important groundwork, and we have a clear call to action for the road ahead.
We entered the session with a clear agenda focused on securing policies and investments to help Oregon meet its climate goals, protect household energy affordability, accelerate the clean energy transition, and create good-paying jobs across the state. With pro-climate majorities in the House and Senate, we were cautiously optimistic that 2025 could be a banner year for climate justice. Against the backdrop of the most aggressive environmental rollbacks in U.S. history at the federal level, it was more important than ever that our state elected officials step up and meet the moment this year.
In reality, the path to progress was steeper than anticipated. Fossil fuel lobbyists were aggressive and unrelenting. Federal rollbacks loomed large. And a worsening economic forecast cast a long shadow over the budget, limiting legislative appetite for bold investments in the clean energy transition and increasing Oregonians’ resilience. In short, this session was a test of climate resolve and a case study in defense. It wasn’t all bad news coming out of Salem (note the wins for energy affordability and clean energy below!). Still, the session was largely characterized by missed opportunities for desperately needed progress, which we cannot afford halfway through this decisive decade for climate action.
Here’s a look at how the 2025 legislative session panned out for climate:
Energy Affordability: Major Wins & Missed Opportunities
As utility rates continue to rise and federal attacks on affordable clean energy increase, state action to protect energy affordability has never been more critical. That’s why one of our top priorities this session was protecting Oregon families and small businesses from rising energy costs with an Energy Affordability package developed with ratepayer advocates, environmental justice, and community-led organizations across the state.
We helped achieve a major win by passing the POWER Act (HB 3546), addressing one of Oregon’s most pressing energy challenges: rising utility costs driven in part by the explosive growth of energy-intensive data centers and cryptocurrency. This new law makes sure that these large energy users pay their fair share of grid infrastructure costs and commit to long-term energy contracts. This landmark law, secured in partnership with the Citizens’ Utility Board, marks a significant step toward a more equitable, fair, and resilient energy system.
In the final days of the session, Legislators also passed several other key energy affordability measures, including:
- Performance-Based Regulation (SB 688), modernizing the Public Utility Commission’s ratemaking process to ensure electric utility companies’ investments are aligned to support our clean energy transition while maintaining affordability and reliability for Oregonians.
- The FAIR Energy Act (HB 3179) limits how often utilities can raise rates and moves increases out of winter when energy usage is highest.
- The Oregon Energy Assistance Program (HB 3792) will protect seniors and low-income Oregonians by providing financial assistance to prevent residential electricity shut-offs.
Another advance was passing the Community Transparency in Home Hydrogen Delivery Act (SB 685), requiring utilities to notify customers when hydrogen is blended into the gas system. Though scaled back under pressure from gas utilities, this law sets an important precedent for greater public oversight.
Unfortunately, other key energy affordability protections stalled out, including a proposal to Get Junk Out of Rates (SB 88), which would have shielded Oregonians from footing the bill for utilities’ political lobbying, advertising, and industry association dues—this bill was blocked by powerful utility opposition. One Stop Shop 2.0 (HB 3081), intended to boost access to clean energy incentives, and Thermal Energy Networks Pilot (SB 1143), which would have scaled up climate-friendly thermal heating and cooling systems with minimal cost, were both casualties of the tight budget.
Clean Grid & Energy Resilience: Breakthroughs Amid Setbacks
Progress on Oregon’s clean energy grid was a major bright spot this session. Two critical bills passed and have now been signed into law by Governor Kotek:
- A bill requiring utilities to deploy grid-enhancing technologies (i.e., GETs) (HB 3336) passed with strong bipartisan support. These tools can accelerate near-term clean energy progress as we work to build out our transmission infrastructure.
- A critical new law tackling Permitting Reform (HB 3681) will streamline permitting for transmission lines and renewable energy projects. Oregon’s last major transmission line took 17 years to permit. This reform brings us closer to a grid that’s ready for the clean energy transition and meeting escalating electricity demand.
We are also celebrating the passage of new laws that will strengthen energy resilience by supporting the development of microgrids (HB 2065 and HB 2066) local, self-contained energy systems that improve reliability and energy independence. These systems are especially important for rural communities and can play a key role in strengthening regional resilience. Thanks to Sustainable NW and other rural clean energy partners for leading the effort on microgrids!
While we are disappointed the Oregon Transmission Authority bill (HB 3628) did not make it across the finish line, its introduction sparked important conversations and laid a foundation for future action. Climate Solutions and our partners in the Oregon Clean Grid Collaborative will carry this momentum forward to advance grid solutions into 2026 and beyond.
Transportation: A Disappointing Turn
Heading into the session, Climate Solutions and our partners in the Move Oregon Forward coalition were eager to shape a once-in-a-decade transportation funding package to accelerate progress on clean air, equity, and electrification. Transportation remains Oregon’s largest source of climate pollution and one of our most powerful levers for building a cleaner, more equitable, and economically resilient future.
Instead, we were forced to play defense as legislators prioritized efforts to roll back existing clean transportation protections, such as the Advanced Clean Truck standard, which would have gradually increased the number of electric and zero-pollution trucks on our roads. We succeeded in defeating this harmful attempt to legislatively undermine these vital clean air protections. Unfortunately, the legislative debate and uncertainty in the face of federal regulatory rollbacks ultimately led the Department of Environmental Quality to delay enforcement of Oregon’s clean truck rules for two years.
A new threat emerged in May, when legislators unveiled a surprise “Cap and Pave” funding scheme that proposed gutting Oregon’s cornerstone Climate Protection Program and redirecting climate funds away from frontline communities to cover transportation budget gaps. Across the board, the Legislature’s transportation package development process lacked the transparency and responsiveness to some major community priorities we had hoped to see.
Along with our Move Oregon Forward partners, Climate Solutions was glad the proposed transportation package (HB 2025) initially reflected a number of core priorities for Oregonians, including important investments for transit and safer infrastructure for walking and biking.
Yet, despite more than a year of tireless advocacy, the proposed legislation ultimately missed the mark on climate, moving us in the wrong direction on clean, electric transportation at exactly the wrong time. The proposed package did not invest a single dollar toward more electric school buses, clean trucks, or charging infrastructure. Worse, the package proposed new, punitive fees that could have made it more expensive for Oregon families and businesses to drive electric than gas-powered vehicles. While electric vehicles should pay their fair share to maintain our roads, we are worried about any proposal that would make it less economic to drive electric and result in fewer clean vehicles on our roads, not more than fossil fuel-powered vehicles.
Even with those shortcomings, it was deeply disappointing to see the legislature fail to move forward with comprehensive transportation legislation. Transit agencies, ODOT, and local governments are now facing layoffs and service cuts, just when Oregonians need more affordable, reliable transportation options.
We look forward to continuing to work with legislators over the interim to find a path forward and ensure that future proposals meet the moment by moving the needle on climate.
Brutal Budget Cuts for Climate & Communities
In recent years, the Oregon Legislature has made smart investments in climate solutions, such as helping renters stay cool during deadly heatwaves, supporting rural clean energy projects, and creating good-paying jobs in the clean energy economy. This year, one of our key priorities was securing sustained funding to ensure these programs can continue delivering results for Oregonians across the state.
Oregon’s climate progress has often been limited by chronic underfunding. This year, the challenge was even greater: the state budget outlook cast a shadow over the entire session, especially given the federal government’s abrupt defunding of health care, education, clean energy, and other critical programs. Despite our hard push with partners through the bitter end of the session, the Legislature’s final budget delivered exactly zero dollars for these key climate and community resilience programs. Letting these programs lapse wasn’t just a budgeting decision. It was a shocking choice by the legislature to leave Oregon communities without critical tools like resilience hubs, microgrids, and cooling like heat pumps as we head into yet another summer of extreme heat, wildfire, and economic uncertainty.
Lessons for the Road Ahead
The 2025 session wasn’t the breakthrough moment we hoped for. It was a test of strength, persistence, and our movement. Because we were able to protect critical gains, it showed us the importance of never giving up. Because we moved forward where we could, it demonstrated the power of our community, collaboration, and coalitions. And when we lost ground, facing powerful fossil fuel-aligned adversaries, we reminded ourselves of the high stakes of the work we have left to do.
As federal protections recede and climate disasters intensify, Oregon’s role as a climate leader is more essential than ever. This session clarified what we’re up against and reaffirmed why we must keep pushing. The stakes are rising. So is our resolve.
